Peruvian millennials invest US$58,000 in foreign stock markets

Millennials, those people born between 1980 and 1996, have stood out for their positive view of their financial future, their access to information and world markets. Therefore, the vast majority of them have chosen to leave their future in the hands of the stock market; that is, stocks before traditional banking.

Joseph RaunelliInvestment Manager of Auryn Holdings SAC, a private investment fund management company, explained that the young Peruvians in his portfolio prefer to invest in the NYSE.

Thus, at the end of 2021, millennial investors made up 47% of its universe; 11 percentage points more than in 2019 and 23 additional points than in 2017. The average ticket invested amounts to US$58,000, with a minimum term of two years and an average age range between 26 and 41 years. They opt for equities and have targeted the American stock market for its high liquidity.

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This shows that “the growth of capital and of the middle class, the availability of income –in some cases as part of wealth transfers– it has generated excess liquidity for many people and has allowed them to look for profitable savings alternatives to put their money to work”, Raunelli highlighted to La República.

Regarding investments, there is a greater interest in those that are familiar to them and of great comfort to the young people of this generation, such as those in the technology sector.

In fact, Auryn’s portfolio data shows that active millennials in this category went from 30% in 2017 to 63% in 2021; investments in ETFs or indices reached nine percentage points five years ago, but in 2021 they amounted to 15%. In contrast, bets on commodity shares fell from 57% (2017) to 7% last year.

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As for companies, Tesla (24%), Apple (12%) and Amazon (3%) were the favorites when it came to buying shares in the last year. On the other hand, Facebook and Disney barely represented a 1% risk; Microsoft reached 2% and NIO recorded 3%.

Finally, the assets invested by millennials in commodities were distributed until 2021 in Freeport-McMoRan (16%), Newmont Corporation (7%), Alcoa Corporation (6%), Barrick Gold Corporation (4%), Cleveland-Cliffs Inc. (2%), LyondellBasell (2%) and Vale SA (1%).

Knowledge and guidance

The millennial investor engages with digital and accesses various investment topics. For this reason, it is advisable to seek advice from a qualified professional authorized by the supervisory body who knows the associated risks and informs the investor about their suitability according to their investment objectives.

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This is how Peruvian millennials advance in the foreign stock market